Institutional adoption of XRP is rising as banks explore Ripple’s payment and liquidity solutions.
Tokenization growth on the Crypto XRP Ledger, including moves by Aviva Investors, signals real-world financial use.
Improved custody and treasury accumulation are strengthening long-term confidence in XRP.
A quiet but strong shift is changing Ripple’s network and its native digital asset, XRP. Unlike earlier crypto cycles that were mostly driven by retail traders, this phase is seeing growing interest from banks, asset managers, and large financial institutions. The change is not loud, but the signals are clear.
On February 11, 2026, Aviva Investors announced a partnership to tokenize funds on the XRP Ledger. This move shows that traditional finance firms are not only watching blockchain technology but also actively building on it.
Tokenization means turning real-world assets, like funds, into digital tokens on a blockchain. This makes transactions faster and more transparent. The fact that a major asset manager is using the XRP Ledger gives confidence to other institutions that may have been waiting on the sidelines.
Recent data from early February 2026 shows that tokenized assets on the XRP Ledger have grown by several hundred percent in just 30 days. This is a sharp increase and signals that institutions are moving from small tests to real use cases.
The XRP Ledger is not only being used for simple payments. It is now being used to manage tokenized funds, short-term liquidity pools, and other real-world financial products. This growing activity creates natural demand for XRP, as the token is often used as a bridge asset to move value across borders.
As more financial products get tokenized, more institutions need access to the underlying blockchain infrastructure. This is one reason banks are quietly accumulating XRP. It is not always for speculation. In many cases, it is for operational use.
One of the biggest concerns for banks has always been custody and regulation. Holding digital assets comes with risk, and large institutions cannot take shortcuts.
In February 2026, Ripple upgraded its institutional custody solutions. These modifications reduced procurement friction and added stronger bank-grade security controls. This makes it easier for compliance teams and risk managers to approve XRP holdings.
With improved custody systems, banks can hold XRP on their balance sheets more safely. It also aligns better with internal risk frameworks. When custody becomes more secure and regulated, adoption usually increases. That is what seems to be happening now.
Also Read - XRP Capitulation Signal Flashes as SOPR Drops Below 1, What’s Next?
Ripple’s main value proposition has always been cross-border payments. Many banks still keep money parked in foreign accounts, called nostro accounts, to manage international transfers. This locks up capital and increases costs.
XRP can be used in on-demand liquidity (ODL) solutions. Instead of pre-funding accounts, banks can convert local currency into Ripple’s altcoin, send it across borders, and convert it into another currency almost instantly. This frees up capital and reduces settlement time.
Several institutions have already worked with Ripple’s network. SBI Holdings in Japan and Santander in Europe have tested or integrated parts of Ripple’s technology. Even though not all partners use XRP directly, the growing comfort with Ripple’s infrastructure supports broader adoption.
Another major signal came in late 2025, when a Ripple-aligned public vehicle planned to raise over $1 billion through a US listing to accumulate XRP as a treasury asset. Evernorth, this kind of move shows strategic confidence.
When large vehicles buy XRP for treasury purposes, it creates long-term holding pressure instead of short-term trading activity.
This can change the market's supply dynamics. It also sends a message to other institutions that XRP is being treated as a serious asset.
At the same time, spot XRP ETFs launched in 2025 have made it easier for institutions to gain exposure to digital assets. This has strengthened the link between investment products and real blockchain usage.
Also Read - XRP Slides 50% in 6 Months: Opportunity or Red Flag for Investors?
Despite the positive developments, not everything is certain. Regulatory clarity is improving in many regions, but it is not fully consistent worldwide. Some banks still prefer to use Ripple’s messaging network without holding XRP.
XRP price volatility also remains a concern. Large institutions need predictable asset behavior for balance sheet management. Sudden price swings can make treasury departments nervous.
Still, the combination of strong custody systems, rapid growth in tokenization, and large institutional accumulation is creating a new dynamic. This phase feels more infrastructure-driven than hype-driven. The shift may not be dramatic in headlines every day, but it is real.
Banks buying XRP today are often doing so for practical reasons. They want faster settlements, lower costs, and access to tokenized financial markets. The move is happening quietly, but it is reshaping how traditional finance interacts with blockchain technology.
What is XRP mainly used for by banks?
XRP is used as a bridge asset to enable faster and lower-cost cross-border payments without pre-funding accounts.
Why is Ripple important to XRP adoption?
Ripple develops payment and liquidity solutions on the XRP Ledger, helping financial institutions integrate XRP into their operations.
What role does tokenization play in XRP growth?
Tokenization allows real-world assets like funds to be issued on the Crypto XRP Ledger, increasing network usage and institutional interest.
How does Aviva Investors fit into this trend?
Aviva Investors announced plans to tokenize funds on the Crypto XRP Ledger, signaling confidence from a major asset manager.
Are all Ripple partners using XRP directly?
No, some institutions use Ripple’s network for messaging and settlement, but not all of them use XRP for liquidity.
Join our WhatsApp Channel to get the latest news, exclusives and videos on WhatsApp
_____________
Disclaimer: Analytics Insight does not provide financial advice or guidance on cryptocurrencies and stocks. Also note that the cryptocurrencies mentioned/listed on the website could potentially be risky, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. This article is provided for informational purposes and does not constitute investment advice. You are responsible for conducting your own research (DYOR) before making any investments. Read more about the financial risks involved here.